Dear Aunty B,
We are a group of three blokes building a new business and things are going to plan which is good and bad.
The bad bit is we are not making as much money as we dreamt of. The good bit is we are making more money that we expected.
Our problem is that several opportunities have presented to us and all look promising. We are now divided over which to pursue as we things are very tight. How do we decide which opportunities to chase and which to leave?
How do entrepreneurs make the right decision when you can only glimpse the future?
In three minds,
Dear In three minds,
Be very careful. Young companies can go off the rails when the owners get too excited. Start with your vision. The vision should have at its heart your competitive advantage – why you are best in the world? It outlines the problem you are solving for your customer.
So the questions to ask are these:
– Are your existing staff creating new products to be sold to those existing customers? If so, that’s good. It will lower your cost of sale because the sales processes are similar and your existing staff can flog it.
– And it can be done out of the usual operating costs without spending a heap on the product development? What will slow you down and distract you is if you are creating a new product that has to be sold to a new marketplace by different sales staff.
The strain on resources when you are a start-up can be immense. Don’t forget the most successful entrepreneurs have one really good idea – and it appears you have – and then they build around it, leveraging existing products to go into new markets. As exciting as new opportunities are, you must stay highly focused while being determined to grow.
Your Aunty B